This document is based on the 1H16 release of IDC's Public Cloud Services (PCS) Tracker and is an update to the Asia/Pacific (Excluding Japan) Public Cloud Services Market Vendor Shares, 2H15 (IDC #AP40967516, September 2016).

Global cloud providers continued to be challenged by the regional cloud providers, and Amazon Web Services (AWS) continued to dominate as the leading provider of public cloud services. After outpacing Salesforce in the last forecast, Alibaba has continued to grab greater market share and moved up to the second spot, pushing Microsoft down to the third position. Regional vendors such as Telstra, Xero, and Alibaba have been successful in maintaining their leadership and constitute the top 10 public cloud vendors in Asia/Pacific (excluding Japan) (APEJ).

"As predicted in IDC's 2016 APEJ Cloud FutureScape, the region is increasingly dominated by global cloud service providers (CSPs) as they leverage their scale and cost advantages. Also as predicted, regional CSPs such as Alibaba are expanding their global delivery capabilities," says Chris Morris, vice president, APEJ Cloud Services. "This is the first forecast wherein Alibaba has overtaken Microsoft to be the number 2 public cloud provider in APEJ. It's early days for Alibaba outside China, and the competition between global CSPs and regional CSPs will be stiff," adds Prabhitha Dcruz, senior market analyst, APEJ Cloud Services.

Different countries in the APEJ region have different market share positions and characteristics; if this information is needed, IDC suggests to contact your local IDC office.